Management: The Maturity Of A CEO Begins With "Hacking": Half Of People Cut Down And Revenue Doubled.

The maturity of a CEO begins with "hacking": half of people cut down and revenue doubled.

Is there more strength in the company?

What is the goal of "chopping people"?

Where to cut it?

The number of companies is the first natural enemy of start-up companies.

Although "people are more powerful", it may be a false proposition in the company.

If the company wants to develop, its employees will have to increase.

But how many people do we need in each stage, what kind of people do we need? What are unnecessary people nowadays? These problems need to be seriously considered.

A few days ago, in a circle of friends, a boss of a business group said that he was chatting with other business owners. Everyone complained that the company was not in a good market recently.

First, the staff is compressed by half, and the company has little change. Instead, its performance has improved. The two is to cut the most expensive people, and the operation of the company has not changed much, but it has been profitable.

First, the target of enterprises cutting people.

The current economic situation and industry environment is not very good. It is estimated that many enterprises' founders and CEO have the heart of "cutting people".

In management circles, there is such a saying:

The maturity of a HR begins with opening up, and the maturity of a CEO begins with "cutting people".

"Chopping people" is a technical activity and can not be hacked.

If you cut it wrong, the team may be hurt and hurt.

If you cut it right, you will get half of it.

What is the goal of "chopping people"?

Where to cut it up?

By what criteria?

How many times after the cut?

Before answering these questions, let's first look at what the purpose of the existence of enterprises is, and this is related to the goal of "cutting people".

Drucker said that the purpose of the existence of enterprises is to create customers.

"Customers are the foundation for enterprises to survive.

To create customers, we must first consider how to meet the needs of customers, how to recognize the value of customers' consideration, and more importantly, how to create customer needs.

Only by winning customers can an enterprise truly own the market.

It can be said that this is the most incisive explanation of the purpose of the existence of an enterprise -- the purpose of the existence of an enterprise is to create customers.

The customer is outside the enterprise, the internal cost is all inside the enterprise.

What is inside the enterprise? Products, marketing, operation, technology, management and other functions and positions are all made up of people.

Man is the biggest cost inside an enterprise.

Here we can string together to understand these three sentences: the purpose of enterprise existence is to create customers; customers are external costs within the enterprise, and people are the biggest cost inside the enterprise.

Then we can conclude that:

In the enterprise, anyone who does not create customers should be cut down.

That is to say, the workflow of internal staff must be centered on customers.

Of course, the creation of customers inside and outside the company has direct and indirect points, for example, front-end sales are directly creating customers, and products and technologies such as back-end are indirect creation of customers.

To sum up, the goal of enterprises to cut people is to establish a process oriented organization that creates customers as the center.

In fact, HUAWEI's Ren Zhengfei said something like that:

The roadmap of product development is customer demand orientation, and the goal of enterprise management is the construction of process oriented organization.

In the same period, HUAWEI had serious organizational and process problems. Later, it spent about 20 billion yuan (tuition fees) (the company's annual revenue) to learn from IBM, a process oriented organization. Before construction, the per capita benefit of HUAWEI was about 1 million yuan, and the per capita benefit after construction was about 3000000, which achieved 3 times the super efficiency growth.

It can be said that the growth of HUAWEI from barbarism to the pformation of the regular army to the 100 billion world-class companies has benefited from the construction of the process oriented organization.

Two, where to cut?

So how can we build an efficient and process oriented organization within the enterprise?

The answer to this question is also related to where we should begin to "cut people" and what standard to cut, so as to ensure that after cutting down, we can do the same.

There are three key words in the problem:

Customers, processes and organizations, each key word, are the breaking points of the knife wielding ax.

With the aim of establishing a process oriented organization, this paper summarizes the three axes of optimizing the organizational process and improving the efficiency of enterprises.

First, axe, focus: re take customer as the center.

Many founders will miss the state of the earliest group of entrepreneurs, and feel that the team is very efficient at that time. They have no jobs or departments, they are all dedicated to their customers.

Later, with the development of the company and the expansion of the scale, we did not know how to have departments, all functions were perfect and perfect, but the operation was not efficient.

This is why the article begins with the saying that the staff is compressed half, and the company has not changed much. Instead, the company has improved its performance and cut the most expensive people.

This shows that with the development of the company, the internal operation process is not centered on customers.

What is the center of customer focus instead of customer orientation? There are four common categories:

1. focus on function

Functional organization is the organizational form of most companies today.

Because enterprises are beginning to grow in the process of producing departments, such as sales department, production department, human resources, finance and so on.

Departments often have serious walls and lack synergy. The process is often "Duan to Duan" instead of "end to end". When facing the changing needs of customers, they shirk their responsibilities and get busy with each other, without any result.

2. take the boss as the center.

Many enterprises, especially small and medium-sized enterprises, are centered on their bosses.

For an entrepreneur, no one can manage him, he is the founder, but when the company is large, every employee is serving the customers. If the boss is the center, the problem is big.

3. in the name of norms

In the name of standardization, many enterprises are killed in the process of becoming bigger.

There is no boundary for norms. We can wear a hat for everyone. You are against the rules.

So we set up a lot of systems, processes and requirements in the organization, and then asked employees to step by step, step by step, do not do much, and do not go too far to make innovations. Finally, the company died.

4. in the name of risk control

In the name of risk control, some large enterprises have established various kinds of means and methods of risk management control, and have carried out various kinds of management without accident.

Then, the biggest thing is nothing but lazy politics.

There are many start-ups after financing, desperately starting to spend money - fast and dry, blind expansion, expansion is bound to attract large numbers of people, but also to increase various marketing costs.

Then they shriveled up the well developed enterprises, because they had forgotten what their customers were and what they called customer focus at this time.

Taking customer as the center, this is the focus of the action of "chopping people".

The founders can compare the four types of "non client centered" enterprises as the four faced mirrors of "cutting people", and always reflect on whether the company's people and processes are customer focused.

Second axe, start point: build a customer centered process.

Products and services are essentially a set of processes.

People must operate in a customer centered process to create customer value.

How can we build a customer centered process? Before answering this question, let's look at the characteristics of processes and good processes first.

Michael Hammer, a master of management, said that the process is a complete set of activity links that end-to-ends create value for customers.

A good process should have at least two characteristics:

1, integrity: "end to end" instead of "paragraph to paragraph", from customer needs to customer needs.

For example, the process of product development should start with product planning, then customer demand, mass production, delivery, and repayment.

But many times, our company's internal process is "Duan to Duan", rather than "end to end".

The owner of nine Mu Wang evaluated himself as a "crime" company. He opened 300 stores a year and closed 100 stores, resulting in a lot of waste of resources.

The process they set up shop before was:

Site approval process, decoration process, display process, shop manager selection process, shop assistant training process.

This is obviously a "paragraph to paragraph" error process.

The correct opening process should be: opening shop planning, location requirements, opening shop resource pool, opening shop success (breakeven and other indicators).

This is an end-to-end process.

Another example is what the prime minister is doing: the abolition of toll stations at the provincial level is to speed up the high-speed pportation process from end to end.

Because eggs lose 40% in logistics.

2, create value for customers.

As mentioned earlier, the purpose of enterprises is to create customers. The premise of creating customers is to create customer value, so the process of your business is not only to end up, but also to create value for customers.

You need to use your process to help customers succeed, so that customers can make money and make customers feel good.

Then you earn money by the way.

The process of maximizing profits is not desirable, because this will inevitably damage the interests of customers and employees, and maintain the rationalization of profits.

Ren Zhengfei's profound reflection on centralized management suggests that managers should stand on the river.

Managers can only irrigate, do not make dams, do not intervene in staff management, and make employees work efficiently with customers as the center.

All processes must be end to end, efficiently completed, and directly across all departments of the company.

Establishing a customer centered process is the starting point of "cutting people".

Take customer demand as the starting point, end customer value as the end, draw the process of their company, form end to end process service closed-loop.

Third axes, foothold: according to the process, additional posts and team building.

The process of customer centred process is coming. Next is the operation of the process, that is, to establish an organization that matches the process.

Organizations are composed of positions and teams.

The establishment of position and team should be based on the customer centered process.

A good company should take the customer as the center and reconsider the existence value of every position, department and organization. The process is oriented to restructure the team, establish committees and cross departmental teams, and enable those functional departments to become resource-based and weaken the whole centralized management mode.

A good team should be like a dragon, no matter how to dance, the relationship between all joints inside the body will not change.

Faucet, such as Marketing, is constantly seeking customers' needs, body as organization, constantly swinging along with the tap, improving the reaction speed and efficiency to customer demand, reducing the supply cost of products or services that create customer value, so that front-line employees can have the power to call artillery fire.

For example, HUAWEI's well known sales "iron triangle" team, first in a project in 2006, HUAWEI found that the team communication is not smooth, the information is not shared, the customer relationship is not in place, the implementation of product solutions can not meet the requirements of customers, the ability to deliver can not satisfy the customers, the information that the customer manager has in the front end can not be quickly pmitted to the back end, and the customer's instructions are often quickly attenuated.

The customer line does not understand delivery, the delivery line does not know the customer, the product line only cares about the quotation, and all the teams are asking the customers to sign the bill quickly. They forget that their existence value is to realize the customer demand.

After the painful failure, they put forward the establishment of a business management team focusing on customer managers, delivery managers and program managers. This is the management mode of the "iron triangle":

The account manager is responsible for the multi product sales in his area. He is customer focused.

The project manager is responsible for product centric multi client and multi regional sales.

The delivery manager is responsible for the stable mass production and delivery of products, so as to improve customer satisfaction.

Under this structure, the three together form a matrix. The customer manager is the main leader of the customer interface, and the project manager and the delivery manager are both ends.

This is the logic behind the "iron triangle".

The special operations forces of the US Army also build processes and positions based on customers, but the customers here are enemies.

For example, the special forces of the US forces in Afghanistan are divided into several combat teams, each group of 3 individuals, a combat expert, an information specialist and a firepower expert, who understand each other.

If the enemy is found, the combat expert is responsible for the vigilance and protects the safety of the team members; the information specialist quickly determines the number, location and equipment of the enemy.

Firepower experts deploy the most appropriate firepower according to the feedback of information experts, and directly issue operational orders to the rear area according to the regulations.

When the order is issued, the aircraft, missiles and other artillery fire will cover the target area and instantly destroy the enemy.

Authorization is determined according to the cost of fire. For example, if the cost of firing is less than $50 million in a single operation, the command can be directly returned to the side without the approval of the superior.

HUAWEI's "iron triangle" mode and the US special forces combat troops are all based on the customer centered process and position. They are the most effective organization modes nowadays. There is no organization form beyond the world.

You may say that the Amiba organization is very similar to this, but the organization of Amiba has not done much at a certain stage, because it has not realized that it is to focus on the client, but to focus on its own interests. They are beginning to split up and start to disunite.

According to the process of customer centred, it is a foothold and difficulty to "cut people".

Because in addition to the establishment of posts, we should establish corresponding qualification system, incentive system and talent echelon system, as well as the strong leadership of the corresponding corporate culture and founding team.

After the establishment of the organization, we should continue to adjust the process centered on care.

Three, application case - IBM

Before selling it to Lenovo, IBM was a computer company.

Computer business is sometimes a big business. If customers want to buy 5000 computers, but for the time being, they don't have so much money. What should I do?

IBM has a credit loan from the bank, so it can communicate with the bank, first give IBM money, then the customer will slowly repay the bank.

This involves a financing process.

It looks like this:

Do you have such a process in your own company?

The first is the customer manager, followed by the company.

For example, the customer placed an order, but after signing the contract, the customer manager went into a nightmare. He had to coordinate various departments in the company, such as production department, warehouse department, and logistics department.

Each department is very slow, customer managers are urging customers every day, and often get scolded.

In fact, in most of the daily work processes, these activities can be divided into three types of activities:

The first is value-added activities, the second is non value-added activities, and third kinds of labor.

The first is value-added activities.

Value added activities refer to the completion of this activity, information entering, information coming out, and results outweigh the gains, which is value added.

For example, a product is input from customer needs, and output is a solution.

This is value-added activities.

Value-added activities should be added in process optimization.

Don't think that process optimization is subtraction.

The second category is non value-added activities.

Such activities may involve examination and approval, auditing and evaluation. There are some characteristics of the appraisal activities. This link can not be avoided, but the efficiency of the links is low. Such activities are called non value-added activities.

Non value added activities support value-added activities, and its strategy is to reduce.

The third category is labor activities.

It means that this job is meaningless.

For example, leadership signatures, staff statistics, reporting, these are pointless control points.

For such activities, its strategy is to delete.

Looking back at the IBM process, there are many computer entry actions.

This is because the information has not been opened, and because the departments are self governed, they have to do three things repeatedly.

There are also clerical staff making records, sending letters to the Ministry of Commerce, and writing letters of quotation, which are not value-added.

These actions can be solved by using the information system or directly by the sales representative.

So this is superfluous.

There are three ways to optimize this process:

First, delete the labor.

It is to delete meaningless activities.

The second is series connection and parallel connection.

It is a person facing five people, at the same time, the information is released, you do at the same time, 5 people finish to hand over to me, this series changes parallel connection.

This method is very powerful.

The third is the thought of master hammer.

Let's take a look at the financing process after the IBM reform.

Set up a new position - trader.

He can integrate many repetitions and meaningless work just now. After the birth of this new post and the optimization of the process, the customer's financing cycle from the original one or two weeks to 4 hours, also reduced the expenditure of manpower and financial resources, and the business also rose rapidly.

Four, the manager made several rounds of performance.

What are the characteristics of this trader? On the face of it, traders are an integrated work. In fact, this is a very important idea -- the manager of a dragon.

A position has been created in our process. This is called a dragon manager, in English called case book.

A dragon manager is only in the process organization, and the functional organization is not.

There are several characteristics of a dragon Manager: first, employees, not departmental leaders, he is a grass-roots employee.

Second, he is responsible for the end-to-end of the process results.

He is not a leader, but he can integrate dozens of people across the Department, HUAWEI mobile phone, thousands of people into one, end to end.

A lot of traditional organization processes are the zombie relay process, and an employee gives them to him after he has finished, and he gives them to the other one, and then carries on the relay one by one.

But any link in the middle is broken, and the process is broken.

The manager is different. He will see the whole process execution. He will follow up all the links. All the links are subordinate to his business. He should pay attention to the fact that he is not a levelling school. He is my business. He has to follow my instructions to complete the work.

The manager of a dragon is directly inserted into the post without looking at the Department.

This is the process of fast traversing.

Do ordinary employees have the capability of "one-stop manager"? Do not worry, they can be realized through training, reasonable authorization, working templates, IT support and so on.

Is there any risk? It doesn't matter. It has information support, IT support, all employees' work traces and treaty rules.

It can ensure efficiency and ensure reasonable wind control.

In addition, after the process is optimized, many grassroots employees are authorized. Is there any possibility of abuse of power? Will it lead to corruption, bribery and other moral problems?

Let's give you another example of HUAWEI. A corrupt official can't be found before HUAWEI's process oriented organization reform.

After landing, thousands of people came out.

Because this process is fair, customer oriented, for example, supplier selection and evaluation process, after the process is completed, genuine suppliers can come in, and poor suppliers will be eliminated.

Those troubled suppliers were eliminated, and he was unwilling to report.

A bunch of employees were reported.

Ren Zhengfei once said that when he was most heartbroken, he was one to report a case.

Do these people want to go to jail? He can't get out of his hands.

They are all understanding, and are all good employees in some sense.

In economics, there is a noun called redemption, that is, if you admit the mistake ahead, it will be written off.

Because we have to face the future.

Ren Zhengfei said, let's buy it.

He looked at the dossier and knew the number of employees and the amount of bribes.

Then say yes, give them a chance.

So let the discipline inspection unit's entire account, notify relevant personnel to put money into the account.

The money back is exactly the same as the figures.

If you have little to investigate, you will send a prison to a problem.

The result was twenty percent more than the actual one, and most of them were voluntarily surrendered, and only four were caught in the end.

The process is customer centered rather than power centric, and this process is to save people, not to "cut people".

To sum up, the establishment of super high efficiency process organization "chopping people" three axes: that is to establish a customer value centered process within the enterprise.

Then generate jobs and build teams based on the process to rethink the existence value of each department and organization, eliminate all unnecessary processes and roles that do not add value to customers, reduce redundancy and improve efficiency quickly.